But China is supposed to be a poor country?
Now consider how many people live in China (1.3bn) and how many people fit into that 1% (13.5m). That's a lot of families who can afford standards of living greatly different from the averages in rural China. They may also have various incentives to spend that money outside of China rather than build up local institutions for their children to attend.
In theory this cash influx is good for foreign educational institutions, but only if they are smart about the money they take and how they factor it in and spend it. I'm not really convinced they are being smart, but time will tell.
It's on the other side of the plant form me -- I don't have good information.
While we're hearing about it happening, we aren't getting specifics about particular people because it's just one or two people living ostentatiously it's a small herd. In a way it's less chance of publicity blowing back on your family in China than flaunting your wealth in Beijing.